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WASHINGTON — Seth Appleton, President of U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, issued the following statement on the Federal Housing Administration’s (FHA) release of its Fiscal Year 2024 Annual Report to Congress on the financial status of the Mutual Mortgage Insurance Fund (MMIF):

“FHA plays an important countercyclical role in America’s housing finance system, and it must remain strong and well-capitalized in order to perform this critical function. While taxpayers stand behind 100% of the credit risk for FHA-insured mortgages, private capital stands in a first-loss position for low down payment loans backed by private MI. As such, policymakers should ensure that there is a consistent, transparent, and coordinated approach to housing policy, so that private capital can protect against credit risk ahead of taxpayers whenever possible. This approach would enable FHA to focus on its mission of supporting borrowers who do not have access to traditional financing and ensure that it can play its countercyclical role under all economic conditions.”

Private MI has enabled nearly 39 million people since 1957 to access affordable and sustainable low down payment mortgages while providing critical credit risk protection. USMI’s November 2023 report detailed the important enhancements the private MI industry has undertaken over the past 15 years that allow it to better support the housing finance system with private capital and serve as a source of strength and resiliency through all market cycles.

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to affordable and sustainable housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.